[et_pb_section fb_built=”1″ _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
It\u2019s no secret\u2014the auto industry has been through a lot in recent years. Inflation, supply chain problems, and changing consumer expectations have left dealerships in a tough spot. Gone are the days when car sales could easily cover all the dealership\u2019s expenses. Today, the average American only owns about nine cars in their lifetime, down from 13 a few decades back. Car owners hold onto their vehicles longer, usually around 5-7 years. With this shift, there\u2019s a rising demand for reliable parts and consistent maintenance to keep these cars roadworthy for longer stretches. Dealerships that can pivot to meet these demands, particularly through their parts and service departments, will pull ahead. Those who don\u2019t risk being left in the dust.<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/DigitalFirts.jpeg” title_text=”E-commerce and Technology in a Modern Retail Setting” _builder_version=”4.27.2″ _module_preset=”default” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”40px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text ul_item_indent=”44px” _builder_version=”4.27.2″ _module_preset=”default” ul_line_height=”1.6em” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Today\u2019s buyers\u2014especially Millennials and Gen Z\u2014aren\u2019t interested in spending hours at a dealership. They want digital convenience, and they want it now. In fact, nearly 60% of OEM auto parts buyers fall into these two generations, and this number is climbing. Think about that: over half of your parts-buying customers expect an online experience. For dealerships, this shift is as much an opportunity as it is a challenge. If you\u2019re not meeting these digital-first expectations, there\u2019s a good chance your competitors are.<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/ElectricVehicles.jpeg” title_text=”Human hand is holding Electric Car Charging connect to Electric car” _builder_version=”4.27.2″ _module_preset=”default” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”40px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text ul_item_indent=”44px” _builder_version=”4.27.2″ _module_preset=”default” ul_line_height=”1.6em” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Electric vehicles (EVs) bring another twist to the dealership world. They\u2019re incredible for reducing fuel costs and emissions, but they don\u2019t need as much traditional service. Without as many mechanical parts, EVs sidestep routine oil changes and engine repairs, which impacts revenue for dealerships relying on these services. Yet, EVs still need specialized care\u2014like battery replacements and software updates. The rise of EVs may mean a lower volume of mechanical fixes, but it creates fresh demand for EV-specific parts and digital services, areas where innovative dealerships can thrive.<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/Profitdecrease.jpeg” title_text=”Economic collapse concept, businessman with falling financial graph chart due to global recession. Stock market crash, inflation, financial crisis, Falling income in GDP, capital reduction” _builder_version=”4.27.2″ _module_preset=”default” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”40px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text ul_item_indent=”44px” _builder_version=”4.27.2″ _module_preset=”default” ul_line_height=”1.6em” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Dealer margins on new cars are dropping fast as inventory levels bounce back. While dealers enjoyed margins close to 7% when cars were scarce, they\u2019re now hovering around 3.2%. Front-end profit margins across dealerships are projected to slide another 10-15% from 2022 by the end of 2024, driven by mounting competition and waning demand. This is putting enormous pressure on dealerships to find alternative revenue streams fast.<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/ProfitIncrease2.jpeg” title_text=”A red arrow marks the business graph, showing a continuous incre” _builder_version=”4.27.2″ _module_preset=”default” width=”100%” max_width=”100%” module_alignment=”center” custom_margin=”40px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text ul_item_indent=”44px” _builder_version=”4.27.2″ _module_preset=”default” ul_line_height=”1.6em” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n This is where fixed ops comes in, providing the steady income that keeps a dealership afloat regardless of car sales trends. In fact, fixed ops has grown to cover an increasing portion of dealership expenses, jumping from 35% in 2010 to an estimated 65% by the end of 2024. With customers holding onto cars longer, they\u2019re coming back for regular maintenance and parts, which means a constant revenue flow for dealerships savvy enough to tap into it.<\/span><\/p>\n So, if your dealership is serious about securing its future, boosting your absorption rate is non-negotiable. By maximizing your fixed ops revenue, especially within the parts department, you\u2019re creating a sustainable buffer against the ups and downs of car sales.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n To quote Wayne Gretzky, \u201cI skate to where the puck is going to be, not where it has been.\u201d The auto industry\u2019s puck is already moving towards fixed ops. Dealership leaders who prioritize absorption rates now will thrive as you enter 2025.<\/span><\/p>\n In the end, fixed ops is about more than just revenue. It\u2019s about building a stable future in an industry known for rapid shifts and unpredictability. By making fixed ops the powerhouse of your dealership\u2019s strategy, you\u2019re turning challenges into opportunities\u2014and setting your team up for long-term success.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.0″ _module_preset=”default” custom_margin=”|auto|89px|auto||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text custom_margin=”51px||13px||false|false” _builder_version=”4.27.2″ _module_preset=”_initial” width=”75%” max_width=”75%” module_alignment=”left” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.2″ _module_preset=”_initial” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Unlock your fixed ops revenue potential\u2014download\u00a0the\u00a0<\/strong><\/span>Ultimate General Manager\u2019s Roadmap to Maximize Absorption Rate<\/b>\u00a0for proven tips.<\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/AbsorbRate-Ebook-blogImage.png” title_text=”AbsorbRate-Ebook-blogImage” url=”https:\/\/www.revolutionparts.com\/ebook\/ultimate-general-managers-roadmap-to-maximize-absorption-rate\/” _builder_version=”4.27.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”off|desktop” module_class=”getInTouch-container” _builder_version=”4.16″ _module_preset=”default” background_color=”#db3126″ background_enable_color=”off” background_image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/2020\/08\/demo-bg.png” min_height_tablet=”” min_height_phone=”” min_height_last_edited=”on|tablet” height_tablet=”” height_phone=”” height_last_edited=”on|desktop” max_height_tablet=”” max_height_phone=”” max_height_last_edited=”on|phone” custom_margin=”||||false|false” custom_padding=”||||false|false” custom_padding_tablet=”60px||60px||true|false” custom_padding_phone=”30px||30px||true|false” background_last_edited=”off|tablet” border_radii=”on|10px|10px|10px|10px” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ _module_preset=”default” header_2_font=”||||||||” header_2_text_color=”#ffffff” header_2_line_height=”1.1em” text_orientation=”center” width=”80%” max_width=”80%” max_width_tablet=”80%” max_width_phone=”86%” max_width_last_edited=”on|tablet” module_alignment=”center” custom_margin_tablet=”||20px||false|false” custom_margin_phone=”||10px||false|false” custom_margin_last_edited=”on|phone” animation_direction=”bottom” hover_transition_duration=”100ms” header_3_font_size_tablet=”42px” header_3_font_size_phone=”32px” header_3_font_size_last_edited=”off|desktop” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_button button_url=”\/demo” button_text=”LET’S TALK” button_alignment=”center” _builder_version=”4.27.0″ _module_preset=”default” custom_margin=”||11px|||” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_button][et_pb_code disabled_on=”on|on|on” _builder_version=”4.16″ _module_preset=”default” width=”90%” max_width=”90%” module_alignment=”center” custom_margin=”-31px||-430px||false|false” custom_margin_tablet=”||0px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” disabled=”on” global_colors_info=”{}” theme_builder_area=”post_content”]The Digital-First Consumer<\/h4>\n
Electric Vehicles:
Changing the Game for Parts and Service<\/h4>\nMounting Financial Pressure and Profit Squeeze<\/h4>\n
Fixed Ops: The Reliable Profit Engine<\/h4>\n
Conclusion<\/h4>\n
Maximize Absorption Rate and Future-Proof Your Dealership<\/h3>\n
Get in touch<\/strong> and let us know how we can help<\/span><\/h2>\n